Godrej Properties shares drop 5% after Q4 results; analysts see stock going up to 60%

Shares of Godrej Properties Ltd. declined as much as 5% on Tuesday, May 5, following its March quarter earnings, even as brokerages remained constructive on the outlook.

The company cited potential risks from global security-related disruptions that could impact the broader economy and sectoral demand, adding that it will remain watchful on emerging trends.

Brokerage firm CLSA has maintained an ‘outperform’ rating on the stock with a price target of ₹2,600, citing strong growth in cash flows.

The management has guided for 14% YoY pre-sales growth in FY27, despite a high base in FY26 and some moderation in industry growth. CLSA believes housing demand remains healthy across markets.

While collections and cash flows are expected to lag pre-sales in FY26, the company sees steady improvement in FY27 and a sharper uptick in FY28, supported by project completions.

Jefferies has a ‘buy’ rating with a target of ₹2,475. It expects pre-sales and cash collections to grow 14% and 20% respectively in FY27.

Higher construction spends in FY26, along with strong pre-sales quality, are likely to support a 20% reported ROE and a free cash flow turnaround by FY28. The brokerage also highlighted recent triggers such as a dividend announcement after a decade and a 5% stake purchase by promoters.

HSBC has reiterated a ‘buy’ rating with a price target of ₹2,900. It expects the company to turn FCFE positive in FY27, aided by moderation in business development and improving collections.

The brokerage also said pre-sales guidance of ₹390 billion, alongside 14% growth in launches and 20% growth in collections.

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